BIR suspends field audits until Jan. 6

MANILA, Philippines—For some taxpayers wary of the taxman, the holidays will not turn into a sunny afternoon when—as the song says—“the taxman’s taken all [their] dough.”

Internal Revenue Commissioner Kim S. Henares has ordered the suspension of field audit and other field operations as well as serving of certain notices until January 6 next year in observance of Christian holidays.

The activities referred to include “examinations and verifications of taxpayers’ book of accounts, records and other transactions.”

Revenue Memorandum Circular No. 58-2011, signed last December 15, states that revenue officers shall not conduct any form of business visits in relation to the serving of letters of authority or audit notices pursuant to any mission orders.

“Likewise, no written orders to audit and/or investigate taxpayers’ tax liabilities shall be served,” the circular added.

However, RMC 58-2011 laid down exceptions, including the investigation of cases that must be wrapped up by April 15, 2012—or the deadline of tax filings for 2011—as well as other matters where deadlines have been imposed or which the commissioner has ordered wrapped up.

To continue during the holidays as well are the processing and the verification of returns of those retiring from business and those related to estate tax, donor’s tax, capital gains tax, withholding tax and documentary stamp tax on the sale of real properties or shares of stocks.

Also exempted from the suspension is the audit of national government agencies, local government units and government-owned and -controlled corporations, including their subsidiaries and affiliates.

“In general, examiners and investigators shall make use of this period to do office work on their cases and to complete the report on those with already completed field work,” the circular said.

Even then, service assessment notices, warrants and seizure notices will still be served.

“More importantly, all efforts should be directed to ensure maximum collection in the remaining days of the year,” the circular said.

Last week, Henares expressed confidence that the Bureau of Internal Revenue’s target for 2011 of collecting P940 billion would be met.

As of end-November, the BIR has collected a total of P854.5 billion, missing the 11-month target of P860.3 billion by just 0.7 percent.